Can cryptocurrency be converted to cash? Discuss!

By Pulakesh Nath on March 27, 2022

Answer: Yes, cryptocurrency can be converted to cash. In fact, it is one of the most fundamental attractions of this type of currency. Cryptocurrency is an extremely volatile virtual currency whose value fluctuates a lot. However, it is quite easy to convert it into cash.

The process of converting cryptocurrency to cash depends on the type of cryptocurrency you have and its availability in the exchange. However, whatever be the type of cryptocurrency, one can easily cash out their cryptocurrencies if they have a wallet.

Exchange your cryptocurrencies to cash with a trusted service provider. There are many service providers who can help you to convert your digital assets into cash. You need to research them and subscribe to their services. Usually, there are two ways of selling the coins:

How to convert your crypto into cash?

To start with, let’s take an example of any cryptocurrency which needs to be converted into cash, for example, bitcoin. The first thing to remember here is converting cryptocurrency into cash will entail an exchange fee as well as taxation which will be levied by a third-party broker.

The fees of course will depend on the number of digital tokens which need to be converted into cash.

Also the broker normally takes a day or two to transfer the converted money into one’s bank account.

There are two methods to convert cryptocurrency into cash, either through an exchange or a broker.

It is quite like getting currency exchanged at airports, so once the digital currency or in our case, bitcoins are deposited with an exchange for withdrawal, the broker will transfer the converted value to one’s bank account.

However as there are restrictions on brokers related to money laundering, the investor should withdraw his or her money through the same bank account in which it was deposited.

The disadvantage with the entire process is that it is quite time-consuming and though experts term it as safe, it takes some time before the money reflects in the account.

In addition to this, the exchange also charges a fee for each transaction and it also varies broker and country-wise.

Mode of transfer

Cryptocurrency can be converted through an exchange or a broker. One can use a peer-to-peer platform to convert digital coins into cash, by just selling them. Also, this system entails lesser fees and guarantees a better exchange rate than one gets through a third-party brokerage.

Investors should also insist on identity proofs before getting cryptocurrency converted into cash. Here it is pertinent to note that one should beware of fraudsters.

So, now you have know how cryptocurrency can be converted to cash. Thanks.